Toyota to cut production 10 per cent

Toyota Motor Corporation, the world’s biggest carmaker, will cut its global production capacity by 10 per cent, or 1 million vehicles, according to a report in the Japanese business newspaper Nikkei.

Reuters Newsagency quotes the newspaper as saying the production cut will come as early as this financial year in an effort to increase the use of manufacturing plants that are current running below the break even point.

The company, which made a loss last year and has seen demand for its vehicles fall worldwide, plans to initiate the cuts by first shutting down New United Motor Manufacturing Incorporated (NUMI), a joint venture with General Motors, and halting production lines at plants in Japan and the United Kingdom, the Nikkei said.

Toyota will slash its production capacity to nine million, in a bid to raise the operation level at its plants above the break-even point of 70 per cent and return to operating profit in the 2010 financial year, the paper said.